India stands on the top most pedestrian when it comes to the production of veggies and on the second where fruits are concerned. Significant vegetables developed in our country are Potato, Onion, Tomato, Cauliflower, Cabbage, Bean, Egg Plants, Cucumber, Gherkin, Peas, Garlic, and okra.
We amount to almost 15 percent of the world production of these products. We are blessed to have a very firm and adaptable processing industry. This plays an important role in diversification of the agricultural sector. The value addition opportunities are thus improved which creates a surplus for the foods produced via agriculture. As this very moment only about 2.2 percent of the fruits and vegetables are ever processed in spite of our 2nd rank in this area. As compared to other countries, we seem to be lacking in this regard. Brazil, for instance has a number of 30 percent while USA stands tall on 82 percent. Of course, our number is expected to increase by the time the 2025 rolls by. Mango is our national fruit and its production amounts to about 40 percent among the Indian fruit production. When it comes to grapes we are the leading exports in the worldwide market. The biggest factor in this regard in the changing tastes and preferences. People may like one fruit today, but would change it to a different one tomorrow. This makes the whole thing a little unpredictable. In spite of everything, the growth has been a very positive one. The fruit production has given way to various beverages and fruit juice production. Sauces, preserved goods and the works. All of this has given a completely new set of wings to the Indian fruit and vegetable production.
Our horticulture production also leads to the heavy need for cold storage, hence, giving way to another industry. Not wanting to waste the hard-produced fruits and vegetables due to environmental stimulus, the need for cold storage facilities is huge. The cost of this industry is very high but in the end it end it can also prove to be very fruitful. The prices of fruits and vegetables go up and down all the time. Storage in a cold facility will help in making the fluctuations a little easier to go through.
Cold Storage Industry Potential
The government has also realized the potential of this industry has started many initiatives and subsidies to promote cold storage facilities. This will cut out the food waste to a great extent and make the entire supply chain a lot smoother. Budding entrepreneurs should surely consider opening up a few cold storage facilities. Not only does this field have the government support but it also has a lot of demand at this very moment. Each and every producer of anything perishable will need your services. Investments in this area are expected to go up in response to the high demand and potential for profits. The food wastage problem can be curbed right at the bud with the help of cold storage. Even the recent budget had good things in store for this industry.
India Cold Storage Market 2015-2020 – Market is expected to be worth US$ 8.57 billion
- Indian cold storage market is expected to grow at a CAGR of 16.09% by 2020 driven by the growth in the organized retail, Indian fast food market, food processing industry and e-commerce sectors.
- Cold storage market in India is expected to be worth US$ 8.57 billion by 2020.
- The cold storage market in India is highly fragmented with more than 3500 players in the unorganized sector and around 30 players in the organized sector.
- India currently has 6156 cold storage facilities across various states with total capacity of 28.68 MMT which is insufficient. Due to lack of cold storage facilities, India has wastage of more than 450MMT every year which leads to a huge amount of loss, and leads to shortage in the overall generation capability.
- Refrigerated storage market in India which constitutes a minor market share in overall cold storage market in India is expected to grow at a CAGR rate of 15% in the next 5 years.
- Refrigerated transportation market which is largest contributor to cold storage market in India is expected to grow at a CAGR rate of 17% in the next 5 years.
- Meat and fish cold storage market in India has largest revenue share of entire cold storage market in Indiaand is expected to grow at a CAGR rate of 9% in the next 5 years.
- Dairy cold storage market in India controls second largest market share in entire cold storage market in India in terms of revenue. It is expected to grow at a CAGR rate of 18.16% in the next 5 years. The break-up for the growth forecast is 14.5% CAGR for butter, 20.5% CAGR for cheese and 19.5% for ice-cream in the next 5 years.
- Pharma cold storage market in India is expected to grow at a CAGR rate of 16% to in the next 5 years till 2020.
- Refrigerated/reefer trucks market in India is expected to grow at a CAGR rate of 85.30% in the next 5 years in terms of number of trucks.
Cold Storage Market in India 2015 – 2020 also has detailed company profiles including their position in cold storage value chain, financial performance analysis, product and service wise business strategy, SWOT analysis and key customer details for ten key cold storage players in Indian market Kelvin Cold Chain Logistics Pvt. Ltd., Snowman Logistics Pvt. Ltd., GatiKausar India Ltd., F-MAX Systems India Pvt. Ltd., Fresh and Healthy Enterprise Pvt. Ltd., M J Logistics Pvt. Ltd., Bharat Refrigeration Pvt. Ltd., ColdEX Pvt. Ltd., R K Foodland Pvt. Ltd., ColdStar Logistics Pvt. Ltd.
The retail sector in emerging economies, such as India and China are increasingly getting organized. This trend among others is expected to augment the cold storage market demand over the forecast period. Government policies to de-regulate the entry of foreign player has increased the Foreign Direct Investment (FDI) in the organized retail sector.
Given massive investments necessary for setting up the refrigerated warehouse business, the cold chain operator must make of significant volumes to attain the break-even point in a stipulated period. As a result, the growth of the cold chain services translates into the growth of the international organized retail market.